Does Amcor have a hedging programme?
In relation to transactional foreign currency exposures, Amcor’s policy is to hedge all net forecast or actual foreign currency exposures greater than A$500,000 equivalent. The gains or costs on entering the hedge and the exchange difference up to the date of the purchase or sale are deferred and recognised as assets or liabilities on the Balance Sheet from the inception of the hedge contract, not when the specific purchase or sale occurs. At maturity, the costs and gains are included in the measurement of the underlying transaction. With regard to balance sheet exposures, Amcor’s approach is to analyse the foreign currency denominated assets and hedge them with an appropriate mix of borrowings in relevant currencies to manage and optimise the exposure of the Group’s net assets. All material foreign currency liabilities are hedged or matched by equivalent assets in the same currencies, such assets representing a natural hedge. In relation to translational exposures, no hedging is under
